US home prices rise in Oct.; largest annual gain since July '06

WASHINGTON -- A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006.

The jump adds to signs of a comeback in the once-battered housing market.

Home prices in San Diego, Carlsbad and San Marcos, including distressed sales, increased by 3.9 percent in October 2012 compared to October 2011, according to the October CoreLogic HPI report by CoreLogic (NYSE: CLGX).

Home prices, including distressed sales, increased by 0.6 percent in October 2012 compared to September 2012.

Core Logic also said Tuesday that U.S. prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted.

The real estate data provider says the decline reflects the end of the summer home-buying season.

Steady price increases are helping fuel a housing recovery.

They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.

Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month.

The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent.

The five states where prices declined were: Illinois, Delaware, Rhode Island, New Jersey and Alabama.